KIP REIT debuts at four sen premium on Bursa’s main market

KUALA LUMPUR: KIP Real Estate Investment Trust (KIP REIT) made its debut on the Main Market of Bursa Malaysia yesterday at RM1.04, a four-sen premium above its initial public offering price of RM1.

The hybrid community-centric retail REIT is the first from the sector to be listed for this year, and had its public subscription shares oversubscribed by 5.07 times with 1.78 million shares changing hands at the opening.

Chief executive officer Lim Han Gie said the company had acquired six assets, including five KIP Marts and one KIP Mall located in Johor, Melaka, Negeri Sembilan and Selangor respectively.

“We provide different kind of assets in the retail sector, with our tenants from broad-based and diversified segments, while comprising mainly small and medium traders from local communities suppplying daily essentials and fresh market produce.

“We provide them a better business platform and environment.At the same time, we also give good marketing support to make them more competitive, compared to their traditional platform at the wet market,” he told a press conference after the listing ceremony yesterday.

The ceremony was graced by Deputy Finance Minister Datuk Lee Chee Leong.

Also present was Bursa Malaysia’s Chief Executive Officer, Datuk Seri Tajuddin Atan.

Moving forward, KIP REIT is expected in five years to acquire five new KIP Marts located in Johor, Pahang, Kedah, Selangor and Negeri Sembilan.

Lim said the company’s rental income had been growing steadily over the past three years from RM48.30 million in 2014, RM51.63 million in 2015 and RM53 million in 2016, achieved through rental increment, organic growth and acquisitions.

Meanwhile, in his speech at the event, Tajuddin said KIP REIT’s listing brings to 18, the total number of REIT companies listed on Bursa, showing confidence in the sector.

He also said the sector had grown from humble beginnings with a market capitalisation of RM400 million in 2005 to RM44.3 billion as of 2016.

According to Tajuddin, KIP REIT’s debt to asset ratio is currently at 14.8 per cent, which is lower than the average Malaysian REIT of about 32 per cent.

He expressed the hope of seeing more good stories on the company assets expansion and enhancement in the future. — Bernama

(From left) KIP REIT Management Sdn Bhd directors Foo Lee Khean and Dato Mohamed Arsad Sehan, chairman Datuk Dr Syed Hussain Syed Husman, managing director Datuk Chew Lak Seong, and executive director Dato’ Eric Ong Kook Liong look on during KIP REIT’s listing on Bursa Malaysia yesterday.